HB 470
Bill Information House Bill 470: AN ACT relating to the Kentucky Teachers' Retirement System and declaring an emergency. Primary Sponsor: Derrick Graham Co-Sponsor: Jody Richards Date Introduced: 02/23/2016 Final Resolution: Bill Summary * Permit the Kentucky Teachers' Retirement System (KTRS) to use and accept electronic signatures as deemed appropriate. * Clarify that annual compensation does not include benefit or salary adjustments that are not available to all members of an agency. * Require all public employers to provide paid leave to teacher trustees serving on the KTRS board. * Clarify the types of remuneration included in retirement incentives. * Require KTRS to contract for insurance. * Require the KTRS board to contract with money managers and allow it to contract with one or more general investment consultants. * Remove references to the book value of assets in regard to limitations on funds managed internally by the system's investment staff. * Remove the requirement that the board investment committee consist of the executive secretary of the system and two trustees. * Require the system's staff to be subject to fiduciary requirements applicable to board members and investment consultants and managers. * Automatically designate a KTRS member's spouse as beneficiary for an active member's account balance upon employment until changed by the member. * Declare the member's spouse as beneficiary of the active member's account balance in the event all named beneficiaries predecease the active member or the member fails to designate a beneficiary. * Allow a full year of service credit for contracts of at least 185 and 180 days if no more than five unpaid leave days are taken during a year. * Clarify the retirement factor for service purchases. * Delete the requirement of physicians' statements corroborating the mental competency of an adult child waiving survivorship benefits. * Add eligibility requirements for including annual leave credit in the retirement calculation for year-round contracts. * Provide that full-time sabbatical leave by university staff participating in the KTRS shall be deemed full-time employment for retirement purposes. * Require employee and employer contributions to be paid during the period of sabbatical leave. * Adjust the cost schedules of providing statutory benefit improvements for annuitants. * Require participating employers to file contribution data with KTRS 15 days after each payroll period and set penalties for noncompliance. * Require a refund of prior installment payments and a reduction in service credit for a member in default on installment payments. * Require a refund of retirement contributions made on compensation that exceeds salary limitations. * Provide that breaks in service are required before returning to work for the employer even if in a position not covered by KTRS if the member is under age 60. * Begin running of breaks in service from date of retirement. * Prohibit prearranged agreements between a retiring member and employer for member to return to work after retirement and require certification thereof. * Allow KTRS to provide medical insurance to retired members who return to work when medical insurance is not available from the employer. * Allow the commissioner of education to pay reemployed retirees in excess of statutory maximums if the commissioner deems that the employees have the necessary experience to provide services and support to persistently low-achieving schools as provided by KRS 160.346. * Require retired members under age 60 returning to work for certain state universities and state community colleges to comply with the separation-from-service requirements, effective July 1, 2017. * Reduce the $500 minimum monthly disability benefit by benefit payments from all state-administered retirement systems for part-time employees and substitute teachers participating in the KTRS who apply for disability benefits on or after July 1, 2016. * Provide that part-time employees and substitute teachers are not eligible to apply for a disability retirement allowance if they are eligible for a nondiscounted service retirement allowance. * Amend KRS 161.614 to include mediation awards. * Amend KRS 161.620 to clarify the option for seeking inflation adjustments. * Authorize KTRS to require more frequent submission of annual reports on reemployed employees by participating employers. * Automatically designate a KTRS member's spouse as beneficiary for a retired member's remaining account balance at the time of death unless changed by the member. * Declare the member's spouse as beneficiary of the retired member's remaining account balance in the event all named beneficiaries predecease the retired member or the member fails to name a beneficiary for the account balance. * Automatically designate a KTRS member's spouse as beneficiary for the life insurance benefit available to active and retired members unless changed by the member. * Declare the member's spouse as beneficiary of the life insurance benefit available to active and retired members if, upon the death of the member, all named beneficiaries predecease the member or the member fails to name a beneficiary. * Provide that members who begin participating on or after July 1, 2016, shall not be eligible for a disability benefit if they are eligible for any unreduced benefit and that they shall have their $500 minimum monthly disability benefit reduced by benefit payments from all state-administered retirement systems. * Amend KRS 161.680 to clarify the system's authority to collect overpayments. 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